Plans to bring 600 new affordable homes to Edinburgh have moved a step closer to fruition.

Twelve developers registered an interest in building the houses as part of the National Housing Trust (NHT) scheme. They have now been whittled down to eight and will submit detailed plans for the local council to consider.

The city's housing problems were highlighted on this blog last month. In 2009 there were an average of 138 bids for every council home advertised. It was reported Edinburgh needs 36,000 homes built over the next decade - 16,600 of which have to be affordable.

'More needs to be done'

While the council welcomed the developers' bids to be involved in the NHT scheme, they admitted there is a long way to go.

Councillor Paul Edie, the city's housing leader, said he hoped to see the affordable housing market kick-started as a result. But "everyone knows more needs to be done," he added.

Under the scheme the council would borrow money, with the Scottish Government underwriting the loans to try to remove the financial risk in lending funds.

Mid-market rent

Local housing officials hope they can secure up to 600 of the planned homes, all of which would be for mid-market rent. Edie said:

"It's great that so many developers have come forward to help us kick start the affordable housing market in the Capital.

"A report to the council's finance and resources committee next week (11 January) highlights the proposed timetable with developers due to submit tenders to the council later this month.

"This is an innovative way of tackling the shortage of affordable homes, not just in Edinburgh but around the country. Everyone knows more needs to be done and it's good that the public and private sector are working in partnership on this project.

"Committing to this scheme shows why the City of Edinburgh Council has rightly been judged as providing the best local authority housing service in Scotland."

With the ongoing financial pressures on local authorities and Scottish Government budgets, NHT is seen as a way of maintaining the affordable housing market.